Design of two-level system stabilizers is considered using an optimal reduced-order model whose state variables are torque angles and speeds. The reduced-order model retains their physical meaning and is used to design a two-level linear feedback controller that takes into account the realities and constraints of the electrical power systems. The two-level control strategy is used, and a global control signal is generated from the output variables to minimize the effect of interaction. The effectiveness of this controller is evaluated, and an example, the multimachine system, is given to illustrate the advantages of the proposed method. The responses of the system with the two-level scheme and optimal reduced order scheme are included for comparative analyses